Despite testing market conditions and regulatory changes, hedge funds see opportunities in 2012

Extracting opportunities

Clock close to midnight at new year

Hedge fund managers are hoping for a smoother ride in 2012 compared with 2011. However, the gruelling market conditions of last year look set to continue.

Such an uncertain and volatile environment will provide a challenge for hedge funds. At the same time the industry begins to implement and contend with a plethora of regulations affecting them directly and indirectly.

Against such a backdrop, hedge funds may struggle to maintain performance and attract net asset flows.

For William De Vijlder, chi